Latest news with #GoToGroup
Business Times
11 hours ago
- Business
- Business Times
GoTo nears net income as cost cuts, fintech bet gather steam
[SINGAPORE] Indonesia's Internet champion GoTo Group is getting closer to sustainable profitability, with its finance chief predicting net income in the not-too-distant future as cost cuts and new business initiatives are bearing fruit. 'We're making very, very positive progress towards net income positive,' chief financial officer Simon Ho said in an interview on Bloomberg TV. 'Clearly we don't think it's too far away.' The ride-hailing and delivery provider has been steadily reducing its losses since its 2022 initial public offering, trying to prove to investors it can make money. The company has slashed jobs and shuttered business units, focusing on its core home market amid tough competition from regional market leader Grab Holdings of Singapore. On Wednesday (Aug 13), GoTo reported its fourth consecutive quarter of adjusted profit, helped by user gains and cost reductions. Net revenue, which excludes incentives to driver and merchant partners and promotions to users, climbed 23 per cent on a pro forma basis in the quarter through June. Investors remain cautious, with GoTo's shares closing at 62 rupiah per share on Thursday and down more than 80 per cent since the IPO. Still, the shares have advanced more than 20 per cent over the past 12 months as earnings have showed signs of improvement. In a move that would upend the regional market, Grab has been weighing a takeover of GoTo at a valuation of more than US$7 billion, Bloomberg News reported. Still, Grab has played down a potential deal, saying in June it's not in talks to buy GoTo 'at this time.' Ho said on Thursday GoTo is concentrating on growing its business. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 'Our focus ourselves is on organic growth,' he said. 'We're not just a ride-share on-demand services platform, we have actually a fast growing and very successful fintech business integrated as well into our ecosystem.' Consumer payments is set to be a key growth driver for GoTo going forward, Ho said. Its digital payments arm, GoPay, has expanded 30 per cent year on year to over 20 million monthly transacting users, he said. 'We expect that to continue to grow strongly,' he said. 'We will then be able to cross-sell more services in our ecosystem to these users, and one of them is of course lending.' The company's loan book grew 90 per cent year over year in the latest period and is set to reach US$500 million by the end of the year, Ho said. 'It continues to grow at a very healthy rate,' he said. 'On-demand services, which drove 70-to-80 per cent of 1H overall Ebitda, could remain the primary profit driver as premium features that offer shorter wait times are popular among users. Fintech's contribution to earnings should stem from ramping up short-term loans embedded in TikTok,' said Nathan Naidu, analyst for Bloomberg Intelligence. 'The video app had 123 million monthly active Indonesian users on average in 2Q, according to SensorTower, vs. GoTo's 22.4 million fintech customers. Guidance suggests that all of GoTo's three businesses will reach breakeven by year-end, nudging the firm closer to a group net profit.' In a bid to accelerate cost savings, GoTo handed over its loss-making e-commerce unit Tokopedia to ByteDance's TikTok in a US$1.5 billion deal. The company also exited Vietnam to concentrate on achieving profitability in its core markets of Indonesia and Singapore, while pushing into growth areas like consumer lending. The company reaffirmed it expects to post adjusted Ebitda of as much as 1.6 trillion rupiah for the full year. BLOOMBERG
Bloomberg
17 hours ago
- Business
- Bloomberg
GoTo Group's Ho on Growth Outlook, Earnings
Simon Ho, CFO of GoTo Group, discusses the company's latest earnings that saw a fourth consecutive quarter of adjusted profit. He says that the ride-hailing, delivery and fintech firm is focusing on organic growth in the Indonesia market and that positive net income is 'not too far away'. He speaks exclusively with Paul Allen and Avril Hong on "Bloomberg: The Asia Trade". (Source: Bloomberg)
Bloomberg
a day ago
- Business
- Bloomberg
GoTo Posts Fourth Straight Adjusted Profit, Helped by Cost Cuts
Indonesia's GoTo Group notched a fourth consecutive quarter of adjusted profit, making progress with reining in expenses and boosting revenue amid stiff competition in ride-hailing and delivery. Adjusted earnings before interest, taxes, depreciation and amortization were 427 billion rupiah ($26 million) for the second quarter, GoTo said in a statement on Wednesday. That compares with a pro-forma loss of 64 billion rupiah a year earlier. Net revenue, which excludes incentives to driver and merchant partners and promotions to users, climbed 23% on a pro forma basis to 4.3 trillion rupiah.
Bloomberg
16-07-2025
- Business
- Bloomberg
Warburg Pincus Singapore Dealmaker Lee Is Said to Leave PE Firm
Warburg Pincus dealmaker Terence Lee is leaving the US private equity firm, according to people familiar with the situation. Lee, who's based in Singapore, focused on investments in Southeast Asia, the people said, asking not to be identified because the matter is private. He joined Warburg Pincus in 2021 and was involved in investments including health care services company Everise, ride-hailing and food-delivery firm GoTo Group and tax compliance service provider OnlinePajak, according to Lee's profile on the buyout firm's website.
South China Morning Post
10-06-2025
- Business
- South China Morning Post
Grab to sell US$1.25 bln in convertible bonds to fund purchases as GoTo takeover stalls
Grab Holdings is planning a US$1.25 billion sale of bonds convertible into stock, partly to bulk up its war chest for acquisitions amid signs that talks to take over rival delivery-and-transport provider GoTo Group have stalled. Singapore-based Grab, whose app is ubiquitous in Southeast Asia for ride hailing and food delivery, will issue convertible bonds that mature on June 15, 2030, it said in a statement on Monday. The securities will carry a coupon of as much as 0.5 per cent a year, payable semiannually, according to terms of the deal seen by Bloomberg News. Grab joins the flurry of sales of bonds that can be swapped into stock by Asian companies this year. That is particularly been the case with Chinese firms as issuers from Baidu to Ping An Insurance Group of China announced sizeable deals in recent months. Aside from possible acquisitions, Grab said it plans some share buy-backs – the company has US$274 million remaining under its share-repurchase programme as of the end of March. The bonds will be redeemable, under certain conditions, from mid-2028. As for the GoTo acquisition, Grab on Monday signalled that it was halting or at least pausing a planned US$7 billion acquisition. The pair of ride-hailing and food-delivery companies have held on-and-off talks for years, but a combination never materialised, partly because of antitrust concerns likely to arise from combining the two dominant players in Southeast Asia. Grab's offering is the largest Asian convertible-bond deal denominated in US dollars since Ping An's US$3.5 billion deal in July 2024, and the biggest by a non-Chinese company since Korean chipmaker SK Hynix's US$1.7 billion issuance in 2023. Ping An last week also issued convertible bonds worth US$1.5 billion, denominated in Hong Kong dollars.
